Our short term bridging loans are for purchase, refinance, property improvement or to unlock working capital for business purposes.
This unique overdraft provides you with a flexible drawdown facility giving you instant liquidity and avoids heavy setting-up costs.
Individually structured loans for residential and commercial projects, with finance available for site purchase, construction and fees, refinance, equity release and to provide working capital. Loans are available up to 90% of the site cost.
Flexible first and second charge non-regulated loans available on terms from 3 to 5 years.
We have a commitment to innovation and with the ever changing financial landscape around us we have designed a range of unique Specialist Lending products that solve a range of property finance needs.
By Brian Rubins, Director at Alternative Bridging Corporation
If you’re an individual thinking about buying property in the UK or a property developer looking for residential, investment, or commercial opportunities, you may need to get a loan to secure additional funding. And before you can get a loan, you’ll need to go through the bridging underwriting process with a bridging underwriter.
In this guide, we’ll explain what a bridging underwriter does, how they make their decisions, and what you can do to improve your chances of getting approved for a loan.
A bridging underwriter is a financial professional who reviews bridging loan applications to determine whether or not the borrower is eligible for a loan. A bridging underwriter consider a variety of factors, including the borrower’s income, debt, credit history and assets, to make their decision.
Underwriters are employed by banks, building societies, and other lenders like ourselves. They work closely with mortgage brokers and other lending professionals to assess the risk of lending money to borrowers.
When underwriting a loan application, a bridging underwriter will typically look at the following factors:
Bridging Underwriters will want to see that the borrower has a stable income that is sufficient to cover the monthly loan re-payments. They will look at the borrower’s salary, bonuses and other regular income sources. They will also look at the borrower’s employment history to make sure that they have a stable job.
Our Underwriters will want to see that the borrower’s debt-to-income ratio is low. This means that the borrower’s monthly debt payments should not exceed a certain percentage of their monthly income. Underwriters will look at the borrower’s outstanding debts, such as credit card debt, student loans and car loans. They will also look at the borrower’s monthly debt payments to see if they are manageable.
A good credit history is something bridging underwriters will want to see from the borrower. This means that the borrower has a history of making timely payments on their debts. Underwriters will look at the borrower’s credit report to see how many accounts they have, how much debt they owe and how often they make late payments.
If the borrower has some assets, such as savings or investments underwriters will also want to see this. This will help to protect the lender in case the borrower defaults on the loan. Underwriters will look at the borrower’s bank statements to see how much money they have in savings. They will also look at the borrower’s investment accounts to see if they have any investments that could be used to repay the loan.
The amount of time it takes for the bridging underwriting process to complete can vary depending on the lender and the complexity of the application. However, most lenders will make a decision within a few days or weeks.
The underwriting process may only take a few days, if the application is straightforward. However, if the application is more complex, such as if the borrower has a lot of debt or a poor credit history. The underwriting process may take a few weeks or even months.
Meet our ‘Head of Underwriting’ Claire O’Brien and her team.
Should a bridging loan application be declined, you mustn’t give up. There are a number of things you can do to improve your chances of getting approved for a loan in the future.
Here are a few tips:
If your income is not high enough to cover the monthly loan payments, you may want to consider getting a part-time job or asking for a raise at work.
You may want to consider paying off some of your debts before you apply for a loan if your debt-to-income ratio is too high,
Should your credit history not be good, you may want to consider getting a credit report and disputing any errors. You can also try to get a secured credit card to start building your credit history.
Once you’ve tried all of these things and you’re still having trouble getting approved for a loan. You may want to consider working with a bridging broker. Bridging brokers have access to a wider range of lenders than you may have on your own. They can help you find a lender that is willing to approve your bridging loan application.
Here are some Alternative Bridging’s short-term lending solutions and what they offer:
Bridging loans are short-term loans that are designed to bridge the gap between the purchase of a property and the sale of an existing property. They can be a great option if you need to close a deal quickly. Bridging loans typically have higher interest rates than traditional mortgages, but they are also shorter-term loans. This means that you will only have to pay interest on the loan for a shorter period of time.
Development finance is a long-term loan that is designed to finance the development of a new property. It can be a great option if you’re planning to build a new home or renovate an existing property. Development finance typically has lower interest rates than bridging loans, but it is also a longer-term loan. This means that you will have to pay interest on the loan for a longer period of time.
Asset-based lending is a type of loan that is secured against assets, such as property or vehicles. It can be a good option if you have assets that you can use to secure the loan. Asset-based lending typically has higher interest rates than other types of loans, but it is also a more flexible loan. This means that you may be able to get a loan even if you have a poor credit history.
It’s important to compare different short-term lending solutions before you decide which one is right for you. You should also make sure that you understand the terms and conditions of the loan before you sign on the dotted line. Take a look at some of the bridging and development finance products we offer.
We hope this guide has been helpful. If you have any questions about our short-term lending solutions, please feel free to contact us.
In addition to the factors mentioned above, bridging underwriters may also consider the following when making their decision:
Underwriters will want to see that the borrower has a stable property portfolio and that they are experienced in property purchases over a significant period of time.
The borrower’s financial statements will want to be seen by the bridging underwriter to see if they have a history of managing their money responsibly.
An Underwriter will want to see that the borrower is buying a property that they can afford and that they are not overextending themselves financially.
If you are considering buying a property, it is important to speak to a broker early in the process. A broker can help you understand the bridging underwriting process. They can help you find an experience lender like Alternative Bridging Corporation that is likely to approve your application.
Don't miss our product updates or property market news.
By entering your email address, you agree to receive our marketing offers in accordance with our Privacy Policy
